Vietnam: Issuer must announce the suspension of public offering

14:55, 05/12/2019

This is a notable content of the Law on Securities 2019, issued by the National Assembly of Vietnam on November 26, 2019.

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đình chỉ chào bán chứng khoán , Luật Chứng khoán 2019

Specifically, according to Article 27 of the Law on Securities 2019 of Vietnam, the State Securities Commission (SSC) is entitled to suspend a public offering for up to 60 days in the following circumstances:

- The public offering application contains inaccurate or inadequate information that might affect investors’ decisions and cause damage to investors;

- The securities are not distributed in accordance with the provision that securities shall only be distributed after the issuer makes the prospectus publicly available at the locations specified in the issuance announcement.

Concurrently, within 07 working days from the suspension date, the issuer shall announce suspension by issuing 01 online newspaper or 03 issues of a physical newspaper, withdraw the issued securities if requested by the investors, and refund the payment to the investors within 15 days from the day on which the request is received.

After the causes of the suspension have been rectified, SSC shall issue a notice to lift the suspension. Within 07 working days from the issuance date of the notice of lifted suspension, the issuer shall announce it by issuing 01 online newspaper or 03 issues of a physical newspaper.

View more details at the Law on Securities 2019 of Vietnam, effective from January 01, 2021.

Ty Na

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